Re: TAF vs LIBOR

On 3 May, 20:53, "econ.disc" <econ.d...@[EMAIL PROTECTED]
> wrote:
> The TAF window seems to have tem****arily replaced the discount
> window. =A0Rates seem to be a few bps below LIBOR. =A0Does anyone have
any=

> thoughts why?

The discount window only accepts high quality collateral and are only
available to the primary dealers.

http://www.frbdiscountwindow.org/frscollateralguide.cfm?hdrID=3D21&dtlID=3D8=
1#3

Many banks do not have much in the way of good collateral. They are,
in fact, insolvent. To bail them out the fed has agreed to accept
their worthless, toxic, credit card debt and sub-prime mortgage debt
backed bonds as collateral. This facility is available to all banks.

See

 http://www.voxeu.org/index.php?q=3Dnode/814